Gridwise blog

*Gridwise does not provide tax, legal, or accounting advice. This material has been prepared for information purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before filing your return.

Every gig worker wants to keep the largest portion of earnings as possible. One excellent way of doing this is to take advantage of the many tax deductions available to you.

The biggest of these, by far, is the expense you incur by using your vehicle for your business. There are two ways to calculate this deduction. One is by using the IRS mileage deduction allowance, and the other is by calculating all your vehicle-related expenses. 

In this post, we examine both methods, giving you the information you need to choose which one will work best for you. Here’s what we’ll cover:

• Maximizing tax benefits
• Why use the standard mileage deduction?
• What does it take to track actual vehicle expenses?
• Choosing your best option

Maximizing tax benefits

There are many legal ways to maximize tax benefits and minimize the amount of money you owe in taxes. Before you can even begin to tally up your deductions, you will need to keep precise records that show what you claim as expenses in ways tax authorities understand: facts, figures, and receipts.

Whether you use the IRS standard mileage deduction or calculate your actual vehicle-related expenses, you’ll need to track your mileage and/or other costs associated with operating your vehicle. The deduction method you choose will dictate how closely you need to track these outlays, but one thing is for sure: you will need to track your mileage no matter which method you select.

Many drivers believe the apps they use accurately track all the work-related miles they drive, but this isn’t the case. Driving and delivery apps track the mileage you travel from the time you receive a ride or delivery request until you complete it—but that’s not every mile you drive for work. Your driving app doesn’t take into account the other deductible miles you drive, such as the costs you incur just going to work.

What type of expense is an example of the cost to drive to and from work? For starters, there are the miles you rack up while driving in between requests, and those long rides from your regular parking spot to places where you can expect to get some action on your apps. As a rideshare or delivery driver, you can deduct these miles as well. 

To track every mile you drive, you need a sophisticated mileage tracker like Gridwise. Gridwise begins tracking mileage from the moment you “tell” the app to track your shift. Simply click on the button, and you’re on your way! 

Every mile you drive—whether it’s to, from, or in between actual assignments—is logged in Gridwise’s mileage tracking software, which you can pull up at any time.

You will also want to make sure you begin the practice of tracking your mileage right away. While it’s possible to reconstruct your mileage records, as shown in this Gridwise blog post, using Gridwise to track your miles is far more convenient. Missing out on counting all your miles can be rather costly, as you’ll discover from these details about the IRS standard mileage deduction.

Tracking with Gridwise also means you'll get reports every time you drive. You'll see your total miles driven, expenses, and earnings all in one spot.

Why use the standard mileage deduction?

The IRS standard mileage deduction is designed to provide those who use their vehicles for work with a simple way to calculate the costs of doing so. Rather than enumerating each and every vehicle-related expense, drivers who use the standard mileage method simply apply the IRS standard deduction rate to their actual mileage. The result is the total deductible amount they can use for vehicle-related expenses.

For 2023, the IRS standard mileage deduction rate is $0.655. This figure estimates a driver’s operating costs and includes items such as fuel and depreciation. While you cannot claim those expenses when you use this method, there are others you can continue to deduct and add on to the amount you claim as your standard mileage deduction. These include

• parking fees
• tolls 
• car washes and detailing
• registration fees

There might be other gig-related expenses as well, including water for your passengers, delivery bags and gear, electronics such as a phone or dashcam, etc. Use Keeper to go through all your expenses, and the app will produce a list of all the items you can deduct. This makes finding and enumerating your deductions clear and simple!

One more note: If this is your first year of driving for a rideshare or delivery app, the IRS wants you to use the standard deduction method. Following your first year, you can choose to switch to the actual expenses method. Let’s take a look at what that might be like, and if there’s any reason to shift gears, if you’ll pardon the expression, after your first year.

What does it take to track actual vehicle expenses?

While it isn’t impossible to track all your actual vehicle expenses, you will need to set up a system to make sure you capture them all. You will also need to know the guidelines for calculating depreciation, be clever about adding all your expenses together, and then determine what percentage of the time your car was used for business.

Here is a list of deductible expenses, according to Keeper:

• fuel
• insurance
• maintenance
• oil changes
• lease payments 
• depreciation 

As noted above, parking, tolls, car washes, and registration can also be deducted. 

Keeping track of all these expenses used to be complicated, but with a slick app like Keeper, it’s easy. You can track these expenses with the app, and set up the Keeper app to search for others that you might have neglected or didn’t know about. Simply link Keeper to the bank account(s) you use to pay for your driving expenses, and the app will keep all your expense records for you. 

See the Keeper website to discover more details about how this works.

Choosing your best option

Most tax experts will tell you that the actual expenses method yields a higher deductible income figure than the IRS standard mileage method. This is true, but only for drivers who use their cars for business to drive 10,000 miles a year or less. Unless you’re a very part-time gig driver, it’s likely that you drive more than that, in which case, listing your actual expenses might not be your best bet.

Let’s take a look at some calculations to illustrate the differences between the two methods.

Many drivers average 100 miles per day, according to posts on a popular Uber driver forum. Working five days per week, let’s say 50 weeks per year, the average full-time gig driver would clock 25,000 miles. Multiply that by the standard mileage deduction rate of $0.655 per mile, and the deductible income would amount to $16,375.

The same driver might find quite a difference when comparing actual expenses vs. mileage deductions. Totaling gas, insurance, registration, roadside service, maintenance, and other expenses is unlikely to yield a number anywhere near as high as the standard mileage deduction rate.

However, a part-time driver who clocks around 10,000 miles per year, with half (5,000) for work, could benefit from using the actual expenses method, if only slightly. The calculations in this post from Keeper show the following deductions (adjusted for 2023 gas prices) for a driver claiming 10,000 miles driven during the tax year, with 5,000 of those miles used for work. 

Gas: $1765.00 (based on 500 gallons @$3.53 per gallon (per AAA)

Depreciation: $3,000 (based on a $20,000, three-year-old car)

Insurance: $1,500 (approximated average)

Repairs: $400

Oil: $100 (if driver does the oil changes)

Misc: $160 (registration, roadside assistance, etc.)

TOTAL: $6,925

Work-use ratio of 50%: $3,462.50

The same low-mileage driver, using the standard mileage deduction, would only be able to deduct $3,275 (5000 miles x $0.655). Because the IRS recently raised the standard deduction rate, the two figures are rather close. However, if that changes, the actual expenses method might make more sense for a low-mileage driver.

So is it better to write off gas or mileage? 

The right choice for you depends on how much you use your car for your driving gig. The best way to decide is, after your first year, to calculate both methods and compare the results. (Remember, the IRS wants to see you use the standard mileage deduction for the first year you use your car for business.)

The key takeaway from when comparing actual expenses vs. mileage is that you need to track your expenses on each and every shift. Lucky for you, there’s Gridwise and Gridwise Tax Help, powered by Keeper. Get 30% off Gridwise Tax Help's expense tracking and tax help services simply by using Gridwise. Gridwise Plus members get 50% off!

Put these powerful apps to work for you, and let your record keeping stress become a thing of the past. You don't have to take us at our word though - here's what other gig workers say about Gridwise and Keeper:

"After trying so many mileage app's for delivery drivers- this has been my fave! Easily navigable & keeps track of lots of data- all for free! manages expenses, mileage, income, taxes."

fastdasherKim

Download Gridwise for easy mileage and expense tracking

Are drivers in California really getting back pay? Apparently, they are, thanks to a driver whose sharp eye and math skills discovered lines in the law leading to more compensation. 

In this post, we’ll tell you exactly why California drivers are receiving months of back pay due to a stipulation in Proposition 22, and what that might mean for the future of drivers there and in other places where similar laws are being proposed. Here’s what we’ll cover:

• What were drivers promised in Proposition 22?
• Did drivers get everything that was promised?
• What’s happening now?
• What Uber news and Lyft news can we expect in other parts of the country?

What were drivers promised in Proposition 22?

When Proposition 22 was passed in November 2020, and became law in 2021, drivers for Transportation Network Companies (TNCs), such as Uber, Lyft, DoorDash, and Shipt, would be exempt from another California law that entitled gig workers to the benefits given to employees. Read more about what Proposition 22 contains in this Gridwise blog post.

While drivers gave up the full benefits of being employees, qualifying drivers did get benefits such as a healthcare subsidy and a minimum earnings guarantee for the time they were actively on a rideshare or delivery run. A reporter named Pablo Gomez studied the law in detail and discovered a provision that many drivers might not have noticed. After comparing notes with driver Servio Avedian, some very interesting information came to light.

According to the law, any drivers who were making the bare minimum would receive a small reimbursement for vehicle expenses. In 2021, the rate for this was 30¢ per each mile driven while engaged in rideshare or delivery trips. This benefit might not sound like a lot, but for drivers who are earning the minimum rate, which is calculated at 120% of the applicable minimum wage, it can add up.

This is especially true for delivery drivers who depend on tips to boost income. With a greater likelihood of failing to meet the minimum hourly wage, they certainly benefit from this provision. For the past two years, the benefit has been paid out by the TNCs at the 30¢ per-mile rate to qualifying drivers, but that isn’t what was supposed to happen, according to the law. 

Did drivers get everything that was promised?

Within the law is a provision for an inflation increase on the 30¢ per-mile compensation. The increase was never allocated to the drivers who qualified for it, so they didn’t get exactly everything that was promised.

Drivers should have received, based on the inflation rate of 6.8% in 2022, 32¢ per mile. As inflation has continued in 2023, the rate should now be 34¢ per mile. It turns out that these increases were never accounted for in the sums that were paid to drivers to compensate for vehicle use.

Meanwhile, customers have been paying a fee of $0.75–$1.00 for California driver benefits on top of what they already pay for each ride or delivery. TNCs collect this money to cover items such as compensation for vehicle use when drivers make the bare minimum or less while driving. 

Drivers and others who question the TNCs’ diligence wonder how much they have made by investing the money that was owed to drivers rather than paying it to them. The TNCs claim they were not responsible for arbitrarily raising the per-mile rate. 

Indeed, according to the law, the California treasurer’s office was responsible for calculating and publishing the new rate each year, and had not done so. The TNCs point this out as the reason why they didn’t change it. No matter which party is at fault, this resulted in 18 months’ worth of missed inflation adjustment on drivers’ per-mile compensation.

What’s happening now?

Once Gomez contacted the state treasurer’s office, and after a rather long exchange of phone calls and posts on Twitter, the treasurer’s office insisted they had indeed posted the rates, but the TNCs dispute this. The rates were posted for 2023, but 2022 was skipped over entirely.

The treasurer’s office says they didn’t post the rates right away because of the controversies surrounding Proposition 22. Read this Gridwise post to get the details about the latest outcome of court battles surrounding the law. The TNCs maintain that the law stipulates the treasurer’s office is responsible for posting the rates; and in the law, it clearly states that is the case. You can read the portion of the law that pertains to the mileage compensation here.

Whether the rates were posted on time or not, and regardless of the disputes surrounding it, Proposition 22 states that drivers are entitled to that inflation adjustment. Most TNCs jumped on doing the right thing once the adjustments were finally posted and it was clear money was owed. 

Some drivers, especially those who do delivery full time, can expect to get as much as $1,000 as a result of this situation, according to Avedian’s calculations. Furthermore, the TNCs’ total payout could come to something like $100–200 million. So far, Uber and Lyft, along with DoorDash, have been sending drivers back pay, but there are other TNCs that have yet to comply.

The treasurer’s office has promised to publish the adjustments every January from now on, despite the disputes that might continue in the courts. Those who are not big fans of Proposition 22 are quick to point out that the law is confusing, and that this stipulation about the treasurer’s office could have been deliberately put in to make the process surrounding these payments somewhat less than clear.

Whether this is true or not, the experiences California is having with Proposition 22 will affect drivers there and wherever people are making their money with driving gigs.

What Uber news and Lyft news can we expect in other parts of the country?

California isn’t the only place in the country where driver pay has become a bone of contention for the TNCs and government entities to gnaw on. New York City was among the first to enact minimum wages for drivers, and Seattle has similar stipulations. Massachusetts has seen some attempts at making minimum payment for drivers the law, and you can read in this Gridwise post about legislation in MInnesota. which was vetoed by the governor when Uber threatened to leave the state. 

It seems that the battles between governments and TNCs will continue, but the experience in California will cause other states to change their strategies. For example, is it easier to approach the idea of a minimum wage than to address the issue of classifying drivers as employees? They might have thought so in Minnesota, but the power of the TNCs, largely due to people’s dependence on them, thwarted the government’s attempt to push them too far.

Let’s face it. People everywhere depend on rideshare and delivery services, and changing the way they do business anywhere would be a big deal. Drivers also depend on the TNCs for a flexible and comparatively easy way to earn money. Read this Gridwise article to see what it might mean if drivers were to be classified as employees. There are benefits, but drivers would have to give up some of the things they like about their gigs, too.

We’ll keep watching as more developments in this saga erupt around the country and ensure you stay informed.

If you’re a California driver, we hope you’ve been tracking your mileage! You could stand to get quite a chunk of change if you have solid records. The best way to make sure you’re keeping track of every mile you drive for your gig is to get Gridwise! Simply sign in when you start your shift, and your miles will be logged seamlessly as you hold on to each precious bit of potential for making more and getting more out the miles you drive.

Download Gridwise now!

As a rideshare driver you sometimes yearn for a break from freeways and rush hour clutter. You ponder taking a weekend night off from carting around barhopping groups of young people or navigating the pickup line at a concert or sporting event. Maybe you just want a complete change of scenery. 

Sound familiar? Then Aryv might be your ticket. 

Aryv (pronounced uh·rive), founded in 2015, specializes in NEMT (nonemergency medical transport), taking people to and from doctor’s appointments, the hospital, chemotherapy, dialysis, or other medical appointments. Payment for the rides is typically covered by Medicare or the patient’s insurance carrier. The rides are often an enjoyable change of pace for both driver and passenger. Drivers like the rides because of the reward of doing something nice for someone. They often find that just being there and listening is important to people who are experiencing a medical challenge. 

Patients are grateful because the rides are shorter than if they were to take public transportation. They are often far easier, too. Buses can be challenging if you are not physically 100%. 

Driving for Aryv requires that you sign up through their website. Drivers are also required to be CPR-certified and have basic first-aid training, although most Aryv passengers are able to get around and not likely to have medical emergencies.

Read on as we address topics about Aryv and NEMT driving, including

• a look at how Aryv works
• are passengers at risk for medical emergencies? 
• how do you sign up for Aryv?
• a look at Aryv earnings 
• why you should consider Aryv over regular rideshare driving
• how Aryv drivers can take advantage of perks from Gridwise

A look at how Aryv works

Aryv works with Medicare, Medicaid, medical insurance companies and facilities, all of which have patients needing transportation to medical-related appointments. By nature, these appointments are planned well in advance, allowing transportation scheduling in advance, too. 

As a driver, you inform Aryv of the schedule you want to drive. Aryv can then preassemble a batch of rides for that period. When it is time to drive, log on to the app and see your day. For a closer look at the Aryv app, see their video on YouTube, or watch it below.

https://www.youtube.com/watch?v=6JqN0YZn2po

Are passengers at risk for medical emergencies?

The patients handled by Aryv are typically at low risk for medical emergencies. Rideshare drivers with any experience have no doubt driven a patient to kidney dialysis or physical therapy or some other regular appointment. These are similar rides. 

Drivers occasionally have to help someone get into the car or get out, but this is the exception rather than the rule. Also remember that Aryv requires drivers to have CPR and first aid training as an emergency precaution. 

Aryv also has a US-based team of dispatchers to help drivers, should a difficulty or question arise. The most oft-encountered problems are passengers who are not at their pick-up point or when there is a discrepancy between the destination on the app and where the passenger believes they are heading. 

How do I sign up for Aryv?

The process is similar to becoming a rideshare driver. Log on to the Aryv website and follow the steps. The entire certification process can take up to 7 days. 

Like other rideshare gigs, drivers are responsible for providing their own car, gas, and maintenance. Aryv asks drivers to have a four-door sedan or SUV, a requirement for all rideshare gigs. 

The most significant barrier to participation is that Aryv operates in only 80 cities across 10 states: Arizona, Connecticut, Florida, Georgia, Michigan, Nevada, New Hampshire, Rhode Island, Texas, and Wisconsin. Aryv has attracted some venture capital money, so look for them to expand operations. 

A look at Aryv earnings

Aryv pays their drivers a per-mile rate when they have a passenger in the car and a fee for each completed ride. Aryv’s website cites the national average of $29 an hour for contract drivers. 

Aryv also knows that drivers like timely access to their earnings, which is why they make their funds available to drivers twice a week.  

If you want to check out Aryv for driver satisfaction, you can look at reviews on their Facebook site.

Whether you're driving for Aryv or considering driving for Aryv, make sure you track your Aryv earnings and mileage with Gridwise!

Why consider Aryv over traditional rideshare driving?

Predictability

When Aryv drivers log on, they find the day planned out for them. Medical appointments are typically scheduled well in advance, so Aryv knows when the rides are needed. When a driver gets in the car, they know their schedule, where they will be going, and when they will be there. They also know when they can schedule a break or meal.

Better Hours

Making an appreciable amount of money as a rideshare driver can involve involves tough hours. Drivers work late nights shuttling people from concerts and special events, then move on to the bar crowds; and if the driver knows the after-hour places, it can be even later. Aryv trips are almost always during daylight hours, although you might occasionally have an early morning pick-up. 

Safety

Rideshare driver attacks are infrequent, but they are well-publicized, as Gridwise as reported in the past. Driving for Aryv, however, ensures a different type of passenger, one less likely to cause you problems. Aryv and the whole NEMT category of driving is much safer. 

Aryv drivers can take advantage of perks from Gridwise

As a gig driver, Gridwise benefits are also extended to NEMT drivers. This includes access to Gridwise’s free mileage tracker app, widely regarded as the best mileage tracker app for gig drivers. You also get access to the Gridwise Gas discount, which gives you as much as $50 off per month.  

Are you looking for a change of pace as a rideshare driver? Check out Aryv. They may be coming to a city near you soon. 

Start driving with Aryv!

When you get into your vehicle, which of your five senses hits you first? Let’s face it. “The nose knows” when it comes to sniffing out how pleasant a ride is going to be. And how pleasant a ride is will dictate how much your passengers tip you.  

Do you want to know how to earn more as a gig driver? Start making the best impression possible on your customers from the time they step into your car. The best way to begin creating a pleasant ride is to get your car to smell fresh and clean at all times. How can you do that?

Forget those little widgets that snap into your car’s vents or those heavy-handed air freshener sprays. They don’t work anymore effectively than the paper pine trees some old-school drivers still have dangling from the rearview mirror. On top of that, those items have their own smell, and their pungent aromas might not please your passengers one bit. Many a Lyft driver and Uber driver have received low-star ratings due to the way their cars’ overly-aggressive air fresheners affected their passengers. What you should be looking into is your vehicle’s cabin air filter. A cabin air filter keeps pollutants out of your vehicle’s ventilation system to help improve the quality of the air you breathe while you drive. But not all filters are created equal.

With Purolator, you have a range of cabin air filters to choose from. But the top of the line is the PurolatorBOSS® Premium Cabin Air Filter with Febreze Freshness. This high-tech, electrostatically charged, micro-woven cabin air filter takes care of all the nasty odors you can imagine with its carbon fibers. It also reduces and eliminates

• virus aerosols
• pollen
• dust
• microscopic particles

Plus, the highly efficient particulate layer blocks up to 99% of fine particles like road dirt, brake dust, soot, pollen, and other inert allergens from entering your vehicle's cabin – all while optimizing air flow through the HVAC system.

While the filter packs odor protection, it’s unscented, so only fresh, clean air flows through your vehicle. With odor elimination like that, you don't have to worry about the stinky city smell blasting at your passengers! This will make any rideshare driver breathe a (pleasant smelling) sigh of relief!

The PurolatorBOSS® Premium Cabin Air Filter optimizes airflow through your car’s HVAC system and also prevents growth of mold and bacteria on the filter. You can rest easy, knowing you have further protection from these potentially dangerous irritants. You will no longer be inhaling road dirt, brake dust, soot, or smoke coming from outside your vehicle, either. What a relief!

As you can see, the PurolatorBOSS® Premium Cabin Air Filter is not just good for you; it’s great for your customers. This Gridwise post shows that a clean car is the #1 way for drivers to earn more tips. The way your vehicle smells is something riders notice immediately. The lack of any noticeable, let alone unpleasant, odors will win kudos for your car, and tips for you!

Is this going to cost you a fortune? Not at all. The Purolator BOSS® is reasonably priced and so easy to install, you can get it working on your next coffee or bathroom break. In fifteen minutes or less, you’ll be enjoying the protection and pleasure of clean, fresh air circulating through your vehicle at all times. And for all gig drivers, right now they are offering a $5-off coupon on Amazon! Learn more here.

There’s absolutely no reason to drive around in a vile-smelling vehicle any longer! Put a PurolatorBOSS® in your car today, and treat yourself to a continuous stream of clean, fresh air!

Certain trademarks used under license from The Procter & Gamble Company or its affiliates.

Who doesn’t want help with paying the painful prices at the pump? Gridwise is giving away $500 in gas to one lucky driver who has Gridwise Plus. Simply be a Plus member during the month of June and you’ll be eligible for the drawing, which will take place on July 1, 2023. Not a Plus member yet? Sign up for Gridwise Plus through this link.

If you’re not a Gridwise Plus member yet, you need to hear why it’s such a good idea to become one. A shot at $500 in gas is a powerful motivation in and of itself, but that’s just one of the perks you get when you become a Gridwise Plus member. Here are some more:

• Boost delivery earnings by up to 30%
  • Advanced insight stats. See your fellow drivers’ earnings per mile and per trip, over various time increments.
  • Earnings insights by time of day. Check out the most productive times to work.
  • 24-hour airport arrivals and departures volume, plus individual flight information, including delays. Find out when to hit the airport anytime of the day.
  • Unlimited event reminders. Keep  up with all the important happenings in the area.
• Save up an additional $3,000/year in mileage tax deductions
  • Get more out of your mileage deduction. Gridwise tracks all your miles, whether you’re on a trip or in between trips, so you get a bigger mileage deduction!  
• Gain access to over $1,000 in driver benefits
  • Gridwise Gas: Save at least 2¢ per gallon on your fuel, all the time.
  • An extra $5000 in no-cost insurance coverage, plus an additional 5% off quarterly plans
  • 15% off your first Gridwise Rental
  • 50% off tax preparer services from Gridwise Tax Help powered by Keeper
  • 33% off your subscription to CarAdvise maintenance and mechanic finder services
• No ads!

You get all these great features and offers, plus first dibs at future deals and discounts—and the inside scoop on the ever-expanding range of functionality Gridwise Plus develops to serve rideshare and delivery drivers like you. With all these perks, programs, and discounts, you can’t afford not to sign up for Gridwise Plus.

Now that you’re ready to take your shot at the $500 gas giveaway from the Gridwise Plus driver challenge, here are the rules.

1. Become eligible by:

• Signing up for the Gridwise Plus.
  • Please note, you will become eligible only after the 7 day trial ends. The trial must be enabled on or before 6/23 to qualify.

* If you are currently a Gridwise Plus member, you are automatically eligible. 

2. Complete your entry into the $500 gas Gridwise Plus driver challenge.

• Sign up to participate through this link.
• Go online to track your mileage with Gridwise during your shifts. 

You receive 1 entry in the giveaway for every 5 shifts you track with Gridwise. Any additional multiples of 5 shifts you track will give you more chances to win. For example, tracking  10 shifts, gets 2 entries; 15 shifts buys you 3 entries, etc.

The winner will be announced at our drawing on July 1, 2023. Will you be the one who gets the big prize? There’s only one way to find out!

Sign up for Gridwise Plus, get out there, and start tracking!

$500 worth of gas could be yours!

*To be eligible for participation in the Gridwise Plus Driver Challenge, the Gridwise drivers must be on a paid subscription to Gridwise Plus, annual or monthly, during the period of June 1, 2023, to June 30, 2023. Gridwise drivers who are accessing Gridwise Plus through a 7-day trial are not eligible to participate. Drivers who sign-up for the Plus membership must do so before June 23rd to get through the 7-day trial before the end of the challenge. Participation in the form of tracked shifts will only count towards challenge entry if they are tracked between June 1, 2023, at 12:00:00 AM (local time) through June 30, 2023 at 11:59:59 PM (local time) through the Gridwise app. 

Update: This bill was vetoed by MN Governor Tim Walz as of June 2023.

Do you want Uber, Lyft, DoorDash, and other companies to be required to pay you a minimum wage and other benefits, or are you content working as an independent contractor? The ongoing Uber driver California battle involving Proposition 22 isn’t the only gig worker conflict in the country anymore. Many states and cities are grappling with the question, Are Uber drivers employees, and if they’re not, should they be?

Nothing makes Uber news and Lyft news faster than activity surrounding the controversy over how drivers are treated by the companies, and how companies might be regulated from one state to the next. Now Minnesota has new Uber laws in process that, if passed, would impose several measures on Uber and Lyft, and change the way they are required to treat drivers.

Will this legislation go all the way through, and if it does, what does it mean for the Transportation Network Companies (TNCs) you drive for, and for gig workers in Minnesota and elsewhere? Let’s begin by examining what the bill contains. 

If passed by the state legislature and signed by the governor, the new Minnesota law will require the TNCs to

• pay Uber and Lyft drivers a minimum of $1.85 per mile and $0.25 a minute while drivers are on a trip, and $1.25 per mile and $0.10 per minute to pick up a rider if they are more than five miles away. These fares would also be subject to increase due to inflation.
• provide insurance for drivers, covering up to $1 million in medical costs and expenses, $500,000 for disability, and 75% of lost wages. These insurance provisions would be in effect whenever the driver is logged into the network, even if they are not accepting rides.
• institute clearer policies regarding driver deactivation.

While these stipulations in the third version of the bill reflect lower minimum costs for insurance and driver payments, the companies maintain that the bill’s passage and ultimate enactment would destroy their ability to do business in Minnesota.

Joel Carlson, a lobbyist for Uber, noted that even these lower minimum rates and benefits would lead to unreasonably high customer prices. Soaring costs for rides would decimate demand for the companies’ services, along with the jobs that the gig driving apps provide. The companies may also be forced to reinstate drivers they have deemed to be unsafe, which would, according to Carlson, be a public safety hazard.

Drivers maintain that the companies’ share of their fees has increased over the years, and that’s made it difficult to sustain a reasonable living driving as a Lyft or Uber independent contractor. In addition to issues related to compensation, drivers also have concerns about their personal safety while on the job, and the ease with which the companies can deactivate them. 

In its present iteration, neither the companies nor the drivers are fully satisfied with the bill’s provisions. The terms are still being negotiated, as is the matter of how far the state legislators supporting the bill will go to bring it to a vote before the current session closes. You can keep up with the latest updates on the Minnesota Legislature website.

Over the last few weeks, crowds of Uber and Lyft drivers have assembled outside the state capitol in order to cheer on the legislators who support this bill. Hundreds of them have formed a new group, the Minnesota Uber/Lyft Drivers Association, to advocate for new Uber regulations on the state and local levels.

How have driver advocacy groups fared in other states? Let’s start with the most prominent case.

Are Uber drivers employees in California? They are not, and when Proposition 22 passed in November 2020, voters indicated that’s the way they wanted it to stay. Various court actions between California state officials and the TNCs have ensued since then. However, as Gridwise reported in March of this year, the companies won the latest round of the fight over Proposition 22 in California.  

The legislators in Minnesota seem to have noticed the foibles of the California situation and have taken a different tack in their attempt to come up with a new Uber agreement. They are using a model that resembles one that was put into effect in Washington state. Unlike Proposition 22 in California, the Uber bill in Washington didn’t involve the issue of whether the drivers should be classified as employees or independent contractors. The same goes for similar regulations imposed by the NYC Taxi and Limousine Commission (TLC).

Instead, the Washington state laws, NYC TLC regulations, and the Minnesota proposal place restrictions on the companies through minimum payments to the drivers. It’s worth noting that the Minnesota legislation has significantly higher rates than Washington does. Depending on the type of trip, the minimum rates there are $1.27 per mile and $0.37 per minute, even though the cost of living in Washington is much higher than it is in Minnesota.

While these high rates might not bode well for the ultimate passage of the Minnesota bill, at least in its current form, the strategy of avoiding the independent contractor vs. employee controversy just might well serve Minnesota legislators and the drivers that support them. However, if they do succeed at passing the bill, and getting it signed by a seemingly reluctant governor, there may be far fewer opportunities for Lyft and Uber drivers in Minnesota.

Read more about Proposition 22 and what it means for drivers in this Gridwise post, and learn about about global trends in drivers’ rights through this article from Gridwise. 

No matter where you stand in the midst of this controversy, it pays to maximize your income by tracking your earnings and expenses, and get insight about when and where you can make the most money. Gridwise gives you all these features and more.

Until the TNCs are forced to offer you insurance and disability coverage, plus other benefits most employees receive, Gridwise has your back there, too. Learn more about Gridwise Benefits, and you’ll discover ways to protect yourself and save money as an independent gig driver. 

Download Gridwise now! 

Friends and family might say you’re an Uber driver, but they probably don’t know you can do the same thing for other companies that work just like Uber. There’s a whole array of rideshare services looking for drivers like you. Each one has something different to offer, and as a driver, it’s important to be aware of all the options you have with regard to rideshare gigs.

This post is designed to clue you in to all the facts surrounding the companies you already know and to expose you to some other services that can make you more money. How many ride sharing companies are there, and why would you have a list of ride sharing companies? 

You might be happy sticking with one of the bigger rideshare companies, but Gridwise figures show that drivers who make the most money drive for more than one app. In fact, [TK]% of drivers refuse to restrict themselves to just one service.There are a whole lot of rideshare driving options out there, and you can multi-app to make the most of them. Also, the ridesharing services you already work for might have opportunities you can use to expand your earning power.

Let’s see what’s out there for you.

Uber

By far the most popular rideshare service, Uber, has additional options that help drivers keep cash rolling in. There are different kinds of rides you can provide, including UberX, UberX Share, and Uber Comfort.  On top of that, Uber drivers can deliver for Uber Eats, hit the grocery aisles for Shop & Pay, or deliver packages for Uber Connect. Learn more about driving and delivering for Uber on their website, and what it’s like to drive and deliver for Uber in these Gridwise blog posts:

• Become a 5-star Uber driver
• Uber Eats driver pay
• Recent updates to the Uber app
• Guide to the Uber Eats app
• Everything you need to know about driving for Uber Eats
• See how much Uber drivers made in 2022

What riders love: Convenience and popularity create consistent earnings, while the Uber Eats options add diversity and added opportunities.

What drivers love: The ability to switch from rideshare to delivery in one app.

Cities/states available: Just about everywhere! From Little Rock to Roswell, Uber has drivers at the ready. See Uber’s website for the full listing.

Lyft

This popular ride-sharing service sticks to what it knows best. While Lyft has experimented with both package and food delivery services, at present Lyft drivers focus on rideshare driving only. This has its good points. For example, Lyft drivers never have to worry about being interrupted by an unwanted request to deliver two hamburgers to a college dorm!

What riders love: Lyft is known for its customer-friendly culture and puts a high premium on rider safety.

What drivers love: Sophistication and performance of the Lyft app, plus popularity that keeps drivers working on the regular.

Cities/states available: Lyft currently operates in 321 cities across the US and Canada. See the entire list of cities on the Lyft website.

Learn more about what it’s like to drive for Lyft in these Gridwise blog posts:

Lyft driver pay

How to be a 5-star Lyft driver

Wingz

Is this a new rideshare company that flies? Well, not exactly, but close enough. Wingz was founded in 2011, so it’s not new, but it started out by specializing in airport rides. The company has branched out since then, offering customers prearranged rides to doctor’s appointments, business meetings, concerts, games, and other big events. Wingz is great for drivers who want to know exactly when and where they need to be to serve their riders.

What riders love: The stress-easing convenience of booking far in advance and getting a flat-rate ride that is dedicated to taking them where they want to go.

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What drivers love: Safety and familiarity, and knowing where customers are going before they take the trip. Wingz customers often repeat their requests also, so drivers get to know them and can stop worrying about picking up strangers.

Cities/states available: Wingz is available in several major US cities, mainly in the West. Check out the Wingz website to see the entire list.

Ziro

Ziro prides itself on advanced technology that improves the customer and driver experience. They deliberately discount the prices of their rides and collect only $1 per ride. That means drivers get to keep the rest. Also, customers are catered to with extra choices and perks such as customized entertainment options.

What riders love: Low fares, the ability to choose their drivers, and the backseat tablet that lets them take charge of the deejaying duties.

What drivers love: Working for a company that doesn’t take huge chunks out of their earnings and genuinely high-tech software that makes Ziro one of the most advanced rideshare platforms.

Cities/states available: So far Ziro’s operations are focused on the San Francisco Bay Area. There are plenty of cities in that sector being served, though. See all available locations in the Ziro service area on their website.

Via

If you want to help reduce traffic congestion in overcrowded urban centers, driving for Via gives you your chance. Via is built around the idea of combining rides by picking up various passengers who are going in the same direction. Passengers wait on a corner near their location, and the Via driver picks them up much like a bus would. They are then  dropped off as close as possible to their destinations. Via is a big-city app, but many municipalities use Via’s transportation logistics software to improve the logistics of their public transportation services.

What riders love: The big dividend of sharing rides with other passengers: lower fares.

What drivers love: Ecologically sound, solution-based business model that delivers every driver’s favorite thing: higher earnings. This article from Gigworker.com confirms that via drivers earn 35%–43% more than Uber and Lyft drivers in the New York City market.

Cities/states available: As a big-city app, Via is available in just a few locations, such as New York, Los Angeles, and Washington, D.C. The full list of cities where Via is offered can be seen on the company’s website.

Curb

There really are still regular taxi cabs in many major cities, and the Curb app helps conventional taxi companies compete with “rideshare USA.” Potential passengers download the app and “hail” a cab right on their mobile devices. The fares are the same as any taxi ride and not subject to surge pricing the way rideshare trips are.

What riders love: Convenience of hailing a real taxi with a professional driver but without standing out on the corner in wind, rain, or searing heat, plus the ability to schedule rides in advance.

What drivers love: The ability for taxi drivers to stay relevant in a world where rideshare is establishing ever-increasing dominance of the market.

Cities/state available: As you might expect, Curb availability is restricted to larger cities where taxis are common. The full list of cities can be seen on the Curb website.

Arro

Affordable rides, plus accommodations for wheelchair accessibility, and a safety-first policy that ensures all cabbies are trained and approved to work with Arro make this app a NYC favorite. The Arro app features real-time information on driver location, so riders aren’t left waiting at the curb, hoping their cab will come any minute.

What riders love: The ability to put all their information into the app, eliminating the need to deal with the transaction in the cab, and the ability to use Arro’s app to pay even if they hailed their cabs with their own mighty hands.

What drivers love: Keeps the cabbies busy and allows them to be of service to people who have mobility challenges other cabs can’t accommodate. Are you a NYC taxi driver? Learn how to hook up with Arro on their website.

Cities/state available: Arro is an option in big cities such as Boston, Chicago, Houston, Miami, New York City, and San Francisco.

Myle

Conceived by a veteran NYC cabbie with a huge heart, Myle’s mission is to go just that much further to please customers. Hence, the name (pronounced “mile”). The company’s founder drove medical personnel to work when the subways were shut down during the pandemic. He then developed Myle to provide concierge services, public and micro-transit services, and medical transportation for 10% less than other rideshare companies. 

What riders love: Finally finding a rideshare company that cares about them and their needs, at rates that are cheaper than other companies.

What drivers love: The ability to have steady work with high earnings and to perform meaningful acts of kindness for people who have special needs.

Cities/states available: New York City only. Learn more about Myle from this article on engadget.com

Make more money with multi-apping

If you wonder why we went to the trouble to list out all these rideshare services, here’s a clue. Multi-apping is the practice of working for more than one rideshare app. Because independent contractors like you are not bound to any one company, you don’t need to be confined to just one. That’s why we want you to know about all these great apps.

Multi-apping is a fairly easy way to multiply your chances for making money at all hours of the day. You can work Uber or Lyft at night, for instance, when people are out and about on the town, then switch to a gig such as Wingz or Myle when things are a bit more sedate. This increases your flexibility and means you can maneuver your driving gig to support you more fully than you might have thought possible.

Read this Gridwise blog post on multi-apping to see how you can benefit by mixing up your gig driving routine.

Make Gridwise your gig driving assistant

If the thought of using multiple rideshare services makes your head spin, don’t worry. Help is here for you! The Gridwise app is the #1 assistant for rideshare and delivery drivers and is a perfect fit for those who multi-app. Simply sync the Gridwise app with your various delivery and rideshare services, and it will track your earnings and keep an account of all the mileage you clock while you’re on the job.

Gridwise puts all the data together so you can see which app is making you the most money, and also gives you ways to record your expenses. You can generate reports and graphs that give you a full picture of your gig driving business.

With your income and expenses all in one place, it’s easy to track your progress and streamline all your recordkeeping, making tax preparation a breeze. But that’s not all Gridwise has to offer. Check out these additional indispensable features:

Where to Drive and When to Drive: insight from real driver data that tells you where and when you can find the most beneficial business in your location

Gridwise Benefits: everything from affordable insurance, medical, dental, vision, and mental health care to discounts on car maintenance and legal and tax help

Gridwise Gas: discounts on gas that ensure you never pay full price to fill your tank again!

No matter which or how many rideshare services you choose to add to your driving gig, Gridwise will make your life easier and help you make more money.

Download the Gridwise app today!

Uber CEO Dara Khosrowshahi recently gave an interview to BusinessInsider.com. The topic was how Uber passengers can boost their rider ratings. It was a revealing read, but the most interesting quote came at the end, and it was more about Uber drivers and the need to be a smart business person.

"The biggest lesson for me was . . . it's hard, and just dealing with understanding how the app works, determining or choosing which trips to take and which trips not to take," Khosrowshafi said. "It's actually amazing how sophisticated you have to be to optimize your own earnings power."

So maybe the rideshare companies are listening to delivery driver complaints and rideshare driver complaints? 

As a follow-up, Gridwise scoured conversations on Reddit and asked questions to both rideshare and delivery drivers about what they would change regarding their gig driving jobs. Some answers were predictable, while others reveal driver concerns about safety and the duplicitous behavior of customers. 

In this blog post, we will look at the answers and discuss the ramifications. Topics include

• The problem of driver churn
• Rideshare driver complaints 
• Delivery driver complaints 
• Why is this information important?
• Gridwise’s new forum to voice these issues 

So much was learned from this research into Reddit that Gridwise has now launched a subreddit. More about this later in the article. 

The problem of driver churn

According to an article on Hypepotamus.com, Taken for a Ride: Why the Current Rideshare Model Is Broken, by at least one estimate, only about 4% of Uber rideshare drivers are still driving a year later, known as “driver churn.” Lyft faces a similar challenge. If the rideshare companies want to retain more drivers, they can do it best by listening to driver input on what works—and what doesn’t.

Rideshare and restaurant food delivery companies face increasing competition for drivers from companies such as Amazon Flex, Roadie, and Walmart Spark. According to the recent Gridwise blog post The Ultimate Guide to Being a Roadie Driver, Roadie drivers made $28.19 per hour in Q4 2022. Recent figures from Gridwise show Amazon Flex drivers making as much as $39 an hour in 2022. In a Gridwise blog post titled, Rideshare vs. Delivery: How Much Did Drivers Earn in 2022?, rideshare driver earnings for all quarters of 2022, according to Gridwise numbers, hover between $20 and $22 an hour. 

Once you gain seniority as an Amazon Flex driver, you also get access to warehouses (and delivery routes) closer to home. This can drastically reduce the miles a driver needs to cover, especially compared to rideshare. Fewer miles traveled means lower expenses on fuel costs. Walmart Spark is a desirable position, evidenced by the waiting list for Walmart Spark jobs in many regions. 

Rideshare and delivery driver request

Gridwise asked rideshare and delivery drivers for their opinion on Reddit about what they would like to see changed. Here are the answers from over 2,200 total votes from fellow rideshare and delivery drivers, company by company. 

Uber

Insufficient base pay is at the top of the list of Uber driver complaints on Reddit. Drivers would also like to see a surcharge for more than two passengers. Other Uber driver grievances include unfair deactivations and the need for better research about those deactivations. Others asked about Uber driver app improvements, specifically to be able to see the name of a destination on the app, not just the address, and the ability to rate customers based on the amount of their tip. 

Another article on BusinessInsider.com revealed how Uber CEO Dara Khosrowshahi anonymously signed up to drive for Uber to gain better insight into the challenges faced by drivers. Khosrowshahi was surprised at the number of passengers who were rude to drivers. Other passengers discussed personal problems and even confidential corporate information with their co-passengers as if he didn’t exist. Khosrowshahi admitted that it made him feel inferior.

The same Business Insider article stated, “Khosrowshahi's moonlighting was part of a bigger operation called ‘Project Boomerang’ that aimed to get more drivers back on the app.… The findings prompted Uber to create a single sign-up for both rides and deliveries, to allow drivers to see drop-off locations before pick-up, and to give drivers hundreds of millions of dollars in bonuses.”

Lyft

Wanting higher base pay is also at the top of Lyft driver complaints on Reddit, especially since Lyft drivers tend to trail their Uber counterparts in earnings on all levels. Drivers would also like to see an end of the acceptance-rate metric. 

Driver safety is on the list of Lyft driver app improvements, too, as drivers indicated they want to see actual photos of passengers, along with the ability to select the area where they are willing to work.

Many drivers suggested that Lyft’s CEO should become a rideshare driver so he could better understand drivers, a request that likely emanated from the Business Insider article. The article also stated that Risher has “emphasized a need to streamline operations and get back to ‘better meeting the needs of riders and drivers’ in employee communications and public messaging.”

Delivery driver complaints

DoorDash

Higher base pay was again at the top of the list of DoorDash driver complaints. DoorDash drivers earned $15.30 an hour in Q1 2022, dropping to below $15.00 an hour for the remaining year. DoorDash driver earnings per trip are substantially lower than Uber Eats, DoorDash’s nearest competitor. DoorDash per-trip earnings were less than $8.00 for all of last year, while Uber Eats drivers earned well over $9.00 per trip. DoorDash drivers earn more per hour because they make more deliveries per hour. Driver saturation in some markets is a problem, though, as drivers commented that DoorDash could help them by limiting the number of drivers in smaller markets.  

A complete look at DoorDash earnings is available on the Gridwise blog post Uber Eats vs. DoorDash Pay: How Much Did Drivers Earn in 2022?

DoorDash driver app improvements were another theme that appeared in the Reddit comments. Drivers complained about issues with the app and problems with navigation (“make it easier to find where I’m delivering,” was one suggestion). Many DoorDash drivers asked for help staying calm, an issue that could likely be solved if drivers had fewer app and navigation problems. 

Uber Eats

Yet again, higher base pay was the theme of many Uber Eats driver complaints. Uber Eats driver app improvements was another motif, as drivers want to end pop-ups for new order requests. Uber Eats safeguarded against this issue by having a “pause” button that drivers could activate if they got busy at a restaurant, but that feature disappeared from the app. Drivers would like to see it return. 

Uber CEO Dara Khosrowshahi, during his incognito time as an Uber Eats driver, was alarmed at the customer practice of tip baiting. This topic also received mention in the Reddit responses. Tip baiting is when the Uber Eats customer indicates a handsome tip with the Uber Eats order as a lure for the driver to give over-the-top service. Afterward, the customer either substantially reduces the tip or completely removes it. According to a blog post by FinancialPanther.com, Uber Eats allows customers to change or delete the tip amount for up to one hour after delivery. DoorDash and Grubhub do not allow customers to change the tip after delivery, so tip baiting is not a problem for these drivers. 

Given the CEO’s experience, it will be interesting to see if Uber changes customers’ ability to reduce the tip after delivery, which would put an end to tip baiting. 

Grubhub

Grubhub drivers repeated the same concern as other gig drivers. Higher base pay was among the Grubhub driver complaints. Other complaints included the need for more orders and Grubhub refining the times the orders are sent, so drivers don’t have to wait for an excessive period at the restaurants.  

Drivers also complained about not always getting an apartment number in their directions. When it came to Grubhub driver app improvements, drivers expressed a desire for a way to rate restaurants in the app. 

Why is this information important?

Both Uber and Lyft are now publicly held companies, under pressure from stock owners to show a return, which often leads to cutting costs.

On May 6, 2023, the Motley Fool reported that 34 analysts followed by the Wall Street Journal gave Uber stock the highest possible rating. This is great news for Uber, but when you’re at the top, you have to work harder to stay there: Uber still needs to pay attention to drivers.

Lyft, however, faces challenges. Share prices dropped 19% on May 5 when the company announced what Reuters described as “a disappointing adjusted core earnings forecast.” The firm also announced corporate layoffs to free up cash, some of which Lyft said would go to maintaining driver earnings.

But as these companies grapple with making drivers, customers, and stockholders happy, it is essential that outside forces continue to remind them what can be done to improve the driver experience. Drivers are, after all, the backbone of the gig economy. 

Each of the infographics in this article follows a dual trend. Rideshare and restaurant food delivery drivers are concerned about pay issues. They also express a consistent need to address issues with the apps and develop new features. Rideshare drivers are concerned about their safety. They want to see passengers post real photos to their profile on the app. Uber drivers want to know the name of the location, not just the address of where they are going.   

Gridwise’s new forum to voice these issues 

Gridwise launched a subreddit that gives drivers a forum for voicing these issues. Gridwise has been an unending support of gig drivers across multiple apps. The Gridwise app allows drivers to track their various gig activities and see when and where the profit centers are, and on which app. It also offers the best mileage tracker for gig drivers, regardless of which app they are using. Another portion of the app allows drivers to track expenses, an invaluable and money-saving feature at tax time, when drivers need to claim every deduction available to them.

Download Gridwise to check out all the invaluable features!

And have fun out there.